POSCO, Hanwha seen bidding for Daewoo Int'l-sources

POSCO and South Korea's chemicals-to-brokerage group Hanwha are studying a potential bid for Daewoo International, sources close to the companies told Reuters on Wednesday. "We are now doing feasibility studies unofficially on Daewoo International, although we had no official guidelines yet from our top management," said a senior official at Hanwha, asking not to be named because he was not authorised to speak to media.
Hanwha, led by gunpowder maker Hanwha Corp, had already done a feasibility study on acquiring Daewoo International, even before it put in a bid for Daewoo Shipbuilding & Marine Engineering, he added.
POSCO, the world's No. 6 steelmaker, has also been conducting feasibility studies on a potential deal for Daewoo International, three industry sources with knowledge of the company said.
A POSCO spokesman said it was interested in Daewoo International, but it was too early to make any official comment before the auction kicks off.
South Korean banks and state debt clearer Korea Asset Management Corp (KAMCO) own a combined 68.8 percent stake in Daewoo International, a trading and energy development company.
Their stake is worth about 3 trillion won ($2.5 billion), including a management premium, based on the market price.
They are planning to pick a lead manager next month to start the sale process, a KAMCO spokesman said last week.
The biggest assets of Daewoo International are controlling stakes in oil and gas fields in Myanmar, estimated at a maximum 8 trillion won.
Hanwha Group CEO Kim Seung-youn said earlier this month the group would consider buying a stake if Daewoo International was put up for sale, sending Hanwha shares higher.
Hanwha dropped talks with state-run Korea Development Bank in January to buy a stake in Daewoo Shipbuilding, worth an estimated $5 billion, on differences over financial terms after Hanwha was picked as the buyer.